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How to calculate BOOK PROFIT for calculation of Partners Rem when firm has opted u/s44AD

Donati (Self occupation) (102 Points)

23 July 2022

The Partnership firm has opted for Presumptive Taxation u/s 44AD.
How to calculate Partners Remuneration and Profit for their individual ITR filing. How to calculate BOOK PROFIT.

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 23 July 2022

There will be only share of profit under 44AD

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sabyasachi mukherjee (27574 Points)
Replied 24 July 2022

No share of profit under Sec 44AD

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 24 July 2022

Partnership Remuneration calculated on the basis of book profit, so first calculate your book profit. In income tax profit declared 8% after considering remuneration and interest.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 July 2022

If you consider under remuneration then you have to pay tax again..

Consider everything under share of profit since partnership firm has already paid taxes under presumptive Taxation